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  "documentTitle": "China Huishan Dairy Holdings (6863 HK)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2016-12-16 00:00:00",
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  "notes": "The slide details discrepancies between reported construction costs and actual observed costs, highlighting that many farms are built but not fully equipped for milking.",
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      "text": "China Dairy Expert Advisor Bio's: Expert A has been engaged in dairy operations in China for over 35 years... Expert B is a Chinese advisor with a specialty dairy consultancy.",
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      "text": "This finding is significant because it implies an even greater delta between the real CapEx expenditure on PP&E, and that derived from the cash flow analysis.",
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      "text": "The finding that the farm was still in a mid-point stage of construction prompted further discussion about the build out costs. The farm manager broke down the construction costs, excluding land, both with and without milking equipment.",
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      "text": "Our investigators corroborated that construction cost estimates were much lower than our estimate of the reported amounts. In a discussion with a deputy farm manager on a newly built Liaoning Huishan Dairy Group Woniushi Farming Co. farm",
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      "text": "end estimates for the construction cost for new milking farms was RMB 20,000 per head, (RMB 60 million for a 3,000-cow farm). Expert B stated that \"from the picture, all I can tell you is that these farms are built very cheaply,\"",
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      "text": "During our investigation, we found that this was not the sole instance of milking farms being built out far enough to become \"operational,\" but halted before completing the milking parlor",
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      "text": "from the picture, all I can tell you is that these farms are built very cheaply — Expert B",
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